Shares of Super Micro Computer (SMCI) surged approximately 15% in premarket trading Wednesday, climbing to $29.51 after the company released a preliminary update on its fourth quarter fiscal 2026 results.
Gross Margin Forecast Nearly Doubles
The main catalyst for the rally was the company’s revision of its gross margin projections. SMCI now anticipates GAAP and non-GAAP gross margins between 15% and 17% for the quarter ending June 30, 2026, nearly twice its prior estimate of 8.2% to 8.4%. This substantial increase was attributed to a more favorable mix of customers and products.
Unprecedented Backlog and Revenue Guidance
Alongside the margin upgrade, SMCI announced its order backlog reached an all-time high, surpassing $60 billion in new orders during Q4. These orders are expected to be fulfilled over upcoming quarters, reflecting strong demand for its AI server offerings powered by chips from Nvidia, Intel, and AMD.
The company expects revenue for the quarter to be near the lower boundary of its $11 billion to $12.5 billion guidance range. Despite the softer revenue outlook, investors focused on the significant backlog and margin expansion.
- Premarket price stood at $29.51, well above the 52-week low of $19.48 but below the 52-week high of $62.36
- SMCI stock has declined about 13% year to date amid a challenging market environment
- CEO Charles Liang recently disclosed plans to co-build a new gigawatt AI data center for SpaceX and xAI within a year
The overall market showed weakness on Wednesday, with major indexes declining, but SMCI's gains were driven by company-specific factors.
Full fourth-quarter earnings will be reported during an earnings call scheduled for August 11.
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